Question

x and y have capital rs 100000 and 60000 the reverse are rs 50000 and creditors are 10000 normal return 10% the goodwill is valued at 50000 at two years of purchasr of super profit find out average profit
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Answer 1

Answer:

Normal return = (100000+60000+50000)*10%

= 21,000

Goodwill is two years purchase

then super profit = 50000/2

= 25000

Super profit = Average profit - Normal profit

25000= Avg. profit - 21,000

Avg. profit = 25,000+21,000

= 46,000(ans)